If he sold out it would be the best thing for FMG.
It is not healthy for the chairman of a public company to own 30% of the company.
Decision may be made not for the benefit of all share holders but to accomodate the chairman.
Directors can't be independent if the chairman has the muscle to force them out on the spot. Hence they may have to tow the line.
The company should have done a 1 for 1 capital raising at $3 when it was above $5. Debt would have been wiped out. Couldn't look at that because of the chairman's holding.
They could yet be enterprising and spin off their rail system in a property trust to current shareholders at a reasonable price and good return. Win win for share holders and company.
But wait, we can't do it because our chairman would not be able to take up his entitlement.
Pear
AGO Price at posting:
24.5¢ Sentiment: None Disclosure: Unspecified
BCI Price at posting:
86.5¢ Sentiment: None Disclosure: Unspecified
MGX Price at posting:
42.5¢ Sentiment: None Disclosure: Unspecified
FMG Price at posting:
$3.02 Sentiment: Hold Disclosure: Held
